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Post by hellodolly on Nov 8, 2017 8:23:25 GMT -5
From Mike during yesterdays CC, the very last paragraph...could easily be overlooked by the time you get to it but to me it is very interesting what their plan is to execute the international strategy. Apparently, something that he gets a lot of questions about:
"We are looking for strategic partners around sections of the world so for example signing 20 partners off to run 20 different countries in the Middle East would create 20 different confusing points of contact for our company versus finding one strategic partner for making up the Middle East plus India. So our main focus is finding the right partners to move Afrezza around the world, who are going to make the investments to make sure it's successful and we're going to make a difference in those countries where it does not exist or they are undertreated because of cost or other reasons."
As he concludes, MNKD is looking for the right partners who can be their exclusive agent to "move Afrezza around the world". I think this is the right strategy for MNKD and path into the international market. The question to you is who can be that partner? Would a large Pharma company want to play in the sandbox with MNKD, share the costs, and who has long enough tentacles into the global market? Could the "Special Meeting in December" include the issuance of those additional shares as part of the negotiation for a partner?
Best regards.
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Post by hans on Nov 8, 2017 8:38:17 GMT -5
From Mike during yesterdays CC, the very last paragraph...could easily be overlooked by the time you get to it but to me it is very interesting what their plan is to execute the international strategy. Apparently, something that he gets a lot of questions about:
"We are looking for strategic partners around sections of the world so for example signing 20 partners off to run 20 different countries in the Middle East would create 20 different confusing points of contact for our company versus finding one strategic partner for making up the Middle East plus India. So our main focus is finding the right partners to move Afrezza around the world, who are going to make the investments to make sure it's successful and we're going to make a difference in those countries where it does not exist or they are undertreated because of cost or other reasons."
As he concludes, MNKD is looking for the right partners who can be their exclusive agent to "move Afrezza around the world". I think this is the right strategy for MNKD and path into the international market. The question to you is who can be that partner? Would a large Pharma company want to play in the sandbox with MNKD, share the costs, and who has long enough tentacles into the global market? Could the "Special Meeting in December" include the issuance of those additional shares as part of the negotiation for a partner?
Best regards. Are we talking about Amgen ?
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Post by mnholdem on Nov 8, 2017 9:12:49 GMT -5
Global partners can be distributors/wholesalers that are not giant pharmaceutical companies who have diabetes drugs that Afrezza would compete against. Even so, global wholesalers write contracts with BPs and can face the same pressures (bribes is too strong a word, no?) to favor one BPs drugs over another.
Also, direct-to-consumer advertising is not permitted in 99% of the global market. Wholesalers work more along a B2B model, although that does involve a different kind of marketing.
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Post by sportsrancho on Nov 8, 2017 9:15:33 GMT -5
So our main focus is finding the right partners to move Afrezza around the world, who are going to make the investments to make sure it's successful and we're going to make a difference in those countries where it does not exist or they are undertreated because of cost or other reasons."
We have a CEO who has a huge drive to make a difference in peoples lives! Believe me he puts the patients first. ( Al would be proud:-) He loves his job. In the end it lifts all boats.
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Post by hellodolly on Nov 8, 2017 10:01:11 GMT -5
Global partners can be distributors/wholesalers that are not giant pharmaceutical companies who have diabetes drugs that Afrezza would compete against. Even so, global wholesalers write contracts with BPs and can face the same pressures (bribes is too strong a word, no?) to favor one BPs drugs over another.
Also, direct-to-consumer advertising is not permitted in 99% of the global market. Wholesalers work more along a B2B model, although that does involve a different kind of marketing.
Distributors/wholesalers that are big enough to cover both areas, as Mike is implying? I was thinking in terms of foreign pharmas or domestic (with global footprints) that need to add diabetes to their portfolio of revenue streaming partnerships and/or not those who are competing with a product. I just don't know who that could be?
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Post by hellodolly on Nov 8, 2017 10:02:42 GMT -5
From Mike during yesterdays CC, the very last paragraph...could easily be overlooked by the time you get to it but to me it is very interesting what their plan is to execute the international strategy. Apparently, something that he gets a lot of questions about:
"We are looking for strategic partners around sections of the world so for example signing 20 partners off to run 20 different countries in the Middle East would create 20 different confusing points of contact for our company versus finding one strategic partner for making up the Middle East plus India. So our main focus is finding the right partners to move Afrezza around the world, who are going to make the investments to make sure it's successful and we're going to make a difference in those countries where it does not exist or they are undertreated because of cost or other reasons."
As he concludes, MNKD is looking for the right partners who can be their exclusive agent to "move Afrezza around the world". I think this is the right strategy for MNKD and path into the international market. The question to you is who can be that partner? Would a large Pharma company want to play in the sandbox with MNKD, share the costs, and who has long enough tentacles into the global market? Could the "Special Meeting in December" include the issuance of those additional shares as part of the negotiation for a partner?
Best regards. Are we talking about Amgen ? Do they have a competing diabetes product? I was thinking someone looking to expand into the diabetes market with a global footprint.
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Post by hans on Nov 8, 2017 10:15:39 GMT -5
Are we talking about Amgen ? Do they have a competing diabetes product? I was thinking someone looking to expand into the diabetes market with a global footprint. I do not believe that Amgen currently maintains any diabetes type drugs. However they do have that global footprint and of course it is where Mike C. came from.
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Post by matt on Nov 8, 2017 10:51:45 GMT -5
As I mentioned in another post, regional marketing deals involving big pharma were the norm back in the 1970's but have become increasingly rare. Even in places like Japan where some of the big pharma avoided like the plague, I have not seen a major regional deal since the early 1990's. Big pharmas are organized by global business units and they tend to want a drug for all countries or not at all and, from their perspective, that makes perfect sense.
Which leaves distributors. There are regional distributors, but they tend to operate on tight margins. Distribution is an entirely different business than pharma marketing and most don't have the kind of highly trained sales force needed to push a drug into a competitive environment. Similarly, most companies do not offer enough of a financial incentive such that the distributor can afford to field a large sales force. If you look at the three largest US pharma distributors, McKesson, Cardinal Health, and Amerisource Bergen, they operate on razor thin margins and huge volumes. Even McKesson, who is the most profitable of the group, only made 3.5% at the operating profit line. From that income they have to pay taxes, carry receivables, invest in warehouses, debt service, and so on. The others make even less.
Back in the day (the 1970's), many international distributors made 5-6% at the pretax line and there may still be pockets of the world where that is true. Whether MNKD can find one of those to cover a huge geography like India and the Middle East is a good question to ask.
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Post by hellodolly on Nov 8, 2017 12:12:26 GMT -5
As I mentioned in another post, regional marketing deals involving big pharma were the norm back in the 1970's but have become increasingly rare. Even in places like Japan where some of the big pharma avoided like the plague, I have not seen a major regional deal since the early 1990's. Big pharmas are organized by global business units and they tend to want a drug for all countries or not at all and, from their perspective, that makes perfect sense. Which leaves distributors. There are regional distributors, but they tend to operate on tight margins. Distribution is an entirely different business than pharma marketing and most don't have the kind of highly trained sales force needed to push a drug into a competitive environment. Similarly, most companies do not offer enough of a financial incentive such that the distributor can afford to field a large sales force. If you look at the three largest US pharma distributors, McKesson, Cardinal Health, and Amerisource Bergen, they operate on razor thin margins and huge volumes. Even McKesson, who is the most profitable of the group, only made 3.5% at the operating profit line. From that income they have to pay taxes, carry receivables, invest in warehouses, debt service, and so on. The others make even less. Back in the day (the 1970's), many international distributors made 5-6% at the pretax line and there may still be pockets of the world where that is true. Whether MNKD can find one of those to cover a huge geography like India and the Middle East is a good question to ask. Seems like a God awful model for distributors if their P&L can only produce that kind of margin? Oil back to $80 - $100 barrel would cut deep into that. I do agree that this is a good question to ask, and I think they have partners in mind. Thanks for your contribution to the discussion.
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Post by lakers on Nov 9, 2017 1:06:30 GMT -5
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Post by hellodolly on Nov 9, 2017 6:40:30 GMT -5
From your link with your highlight within. Two clips as follows, of interest related to my question:
1. "These purposes may include: raising capital; providing equity incentives to employees, officers and directors; establishing strategic relationships with other companies [partnership with equity stake in Mnkd] expanding business or product lines through the acquisition of other businesses or products; and other purposes."//
2. Julphar Gulf Pharmaceutical Industries is the largest generic pharmaceutical manufacturer in Middle East and North Africa and distributes medicines to over 40 countries. Established in 1980 in the United Arab Emirates under the guidance of His Highness Sheikh Saqr Bin Mohammed Al Qasimi, Julphar's first stand-alone facility produced only five products. Over three decades later, we operate sixteen internationally certified manufacturing facilities globally, produce over a million boxes of medicines daily and hold 4,074 product registration certificates.
Thirteen of our facilities are based in the UAE and cover production areas including tablets, syrups and suspensions. Julphar has also launched manufacturing facilities in Ethiopia, Bangladesh and Saudi Arabia as part of its ongoing international expansion strategy.In 2012 Julphar launched a 150 million-dollar Active Pharmaceutical Ingredient (API) manufacturing facility – Julphar Diabetes – entirely dedicated to producing raw material needed for insulin formulation. Julphar Diabetes has the capacity to produce 1,500 kg of recombinant human insulin and insulin analogues crystals (rDNA), equivalent to 40 million vials of insulin per year. This positions Julphar among the largest manufacturers of insulin in the world, and the only one of its kind in the Middle East.
Julphar maintains a diverse product portfolio which targets major therapeutic segments. It includes the following categories: Wound, Anemia and Women Care, Adult Primary Care, Pediatric Primary Care, Gastro Care and Pain Management, Cardiopulmonary Care, and Consumer Care.As part of its on-going responsibility, Julphar partners with local and global companies to make a positive impact across all healthcare sectors by funding scholarships for educational facilities and by providing sponsorship of various health campaigns across MENA.
Julphar employs approximately 3,000 people around the world and registered sales revenue of AED 1.45 billion in the year ending 2016, demonstrating a significant growth based on last year's results. Emerging markets remain a key priority for sustainable growth, as Julphar’s Middle Eastern roots allow us to reach difficult markets in a timely manner.
With 83 registered products sold in over 40 countries, Julphar is a stellar example of one of the UAE’s local businesses making an impact on the global stage. Julphar is Current Good Manufacturing Practice (cGMP) compliant and has gained ISO9001 and ISO 14001 accreditations, as well as the EU Good Manufacturing Practices (GMP) and Good Laboratory Practices (GLP) certifications. We work closely with regulatory bodies, such as the UAE Ministry of Health (MOH) and the US Food and Drug Administration (FDA) to ensure all our practices are aligned with the international requirements. Julphar in essence is Sustaining Health across the globe.//
LAKERS: OK. Julphar seems like the most obvious choice for establishing a strategic relationship and providing them with an "equity stake in MNKD" for that region. I think Mike and Co have to be really trying to put the pedal down in this countries and looking for that right partnership. If it's Julphar or anyone else, having an equity stake in the company that is providing you with the product to distribute would seem to prevent any more Sanofi type shenanigans, IMHO.
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Post by dreamboatcruise on Nov 9, 2017 7:12:53 GMT -5
From Mike during yesterdays CC, the very last paragraph...could easily be overlooked by the time you get to it but to me it is very interesting what their plan is to execute the international strategy. Apparently, something that he gets a lot of questions about:
"We are looking for strategic partners around sections of the world so for example signing 20 partners off to run 20 different countries in the Middle East would create 20 different confusing points of contact for our company versus finding one strategic partner for making up the Middle East plus India. So our main focus is finding the right partners to move Afrezza around the world, who are going to make the investments to make sure it's successful and we're going to make a difference in those countries where it does not exist or they are undertreated because of cost or other reasons."
As he concludes, MNKD is looking for the right partners who can be their exclusive agent to "move Afrezza around the world". I think this is the right strategy for MNKD and path into the international market. The question to you is who can be that partner? Would a large Pharma company want to play in the sandbox with MNKD, share the costs, and who has long enough tentacles into the global market? Could the "Special Meeting in December" include the issuance of those additional shares as part of the negotiation for a partner?
Best regards. I'm not sure I can answer that question, but I'd contribute what I believe might be some insight. They've been looking for partners since SNY backed out. Perhaps they have now turned down some partner as being too small (single country), but I can't imagine they've been turning down partners because of being too far reaching. So this "change" of looking for large partners, if anything other than an excuse, isn't likely to magically make one appear. Could the special meeting in Dec include issuance of shares to a global partner... theoretically anything that can't be proven impossible could happen... perhaps Mike will ride in on a unicorn. We've been waiting for a unicorn for a long time. Though good lord I hope they don't give half the company away for a distributor for the Middle East and India.
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Post by hellodolly on Nov 9, 2017 12:02:24 GMT -5
From Mike during yesterdays CC, the very last paragraph...could easily be overlooked by the time you get to it but to me it is very interesting what their plan is to execute the international strategy. Apparently, something that he gets a lot of questions about:
"We are looking for strategic partners around sections of the world so for example signing 20 partners off to run 20 different countries in the Middle East would create 20 different confusing points of contact for our company versus finding one strategic partner for making up the Middle East plus India. So our main focus is finding the right partners to move Afrezza around the world, who are going to make the investments to make sure it's successful and we're going to make a difference in those countries where it does not exist or they are undertreated because of cost or other reasons."
As he concludes, MNKD is looking for the right partners who can be their exclusive agent to "move Afrezza around the world". I think this is the right strategy for MNKD and path into the international market. The question to you is who can be that partner? Would a large Pharma company want to play in the sandbox with MNKD, share the costs, and who has long enough tentacles into the global market? Could the "Special Meeting in December" include the issuance of those additional shares as part of the negotiation for a partner?
Best regards. I'm not sure I can answer that question, but I'd contribute what I believe might be some insight. They've been looking for partners since SNY backed out. Perhaps they have now turned down some partner as being too small (single country), but I can't imagine they've been turning down partners because of being too far reaching. So this "change" of looking for large partners, if anything other than an excuse, isn't likely to magically make one appear. Could the special meeting in Dec include issuance of shares to a global partner... theoretically anything that can't be proven impossible could happen... perhaps Mike will ride in on a unicorn. We've been waiting for a unicorn for a long time. Though good lord I hope they don't give half the company away for a distributor for the Middle East and India. I don't think you have to worry about Mike C giving away the farm. They will need more cash with the added shelf, for future use and "giving away" shares in exchange for distribution doesn't raise cash. I wouldn't look for anything more than 5%, tops in my estimation with some milestones as a cherry thrown in on top of the whipped cream.
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Post by xoxoxoxo on Nov 9, 2017 13:15:47 GMT -5
I know I'd be willing to accept 50% of the company in free shares in return for selling afrezza overseas in the middle east + india. I promise to do as good of a job as sanofi!
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